APY Calculator
Convert APR to APY with any compounding frequency — for DeFi yields
APR → APY
Effective APY
22.13%
Investment projection
Final amount
$12,213.36
Interest earned
$2,213.36
APY by compounding frequency (at 20% APR)
Annually
20.00%
Monthly
21.94%
Weekly
22.09%
Daily
22.13%
Continuously
22.14%
APY → APR (reverse)
Required APR (at current frequency)
19.89%
About the Apy Calculator
APR (Annual Percentage Rate) and APY (Annual Percentage Yield) are often used interchangeably in DeFi, but they measure different things. APR is the simple annual rate without compounding, while APY includes the effect of reinvesting earnings. At 20% APR compounded daily, the effective APY is 22.13% — a meaningful difference.
This calculator converts between APR and APY at any compounding frequency: annually, monthly, weekly, daily, or continuously. DeFi protocols typically compound daily or continuously, so the difference between the quoted APR and your actual returns can be significant.
How to use
- Enter the APR quoted by the protocol.
- Select the compounding frequency (most DeFi protocols use daily).
- See the effective APY and the difference from simple APR.
- Use the projection tab to model actual dollar returns.
- Use the reverse calculator to find the APR behind a quoted APY.
Frequently Asked Questions
Why is APY higher than APR? ▾
APY includes compound interest — you earn returns on your returns. At 20% APR compounded daily, you earn approximately 0.0548% per day, which compounds to 22.13% APY over a year. The more frequent the compounding, the bigger the gap.
Which compounding frequency do DeFi protocols use? ▾
Most protocols compound automatically on every harvest or epoch: Aave compounds per block, Compound per block, Yearn on strategy harvests, Morpho continuously. Daily or continuous compounding gives the closest approximation for most DeFi yields.
What is the difference between simple and compound interest? ▾
Simple interest (APR) earns a fixed percentage of your original principal. Compound interest (APY) earns a percentage of your current balance, including previously earned interest. Over time, compounding produces exponentially more than simple interest.
Is this tool free to use? ▾
Yes! This tool is 100% free. No signup, no credit card, no limits. It's part of Formatho's privacy-first developer toolkit.
Is my data safe? Does this tool send data to a server? ▾
Absolutely. This tool runs entirely in your browser. Your data never leaves your device. Zero server-side processing, zero tracking.